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Highlights
- Construction costs have risen worldwide recently.
- Tasmanian Constructions, Probuild and Condev collapsed earlier this year and now Pivotal Homes has joined them.
With the global rise in construction costs, the construction sector has been facing a challenging situation since the onset of this year. After a few prominent construction companies, including Tasmanian Constructions, Probuild and Condev, collapsed earlier this year, a new company Pivotal Homes has joined the list. The development is seen as a major blow to the already weakened housing sector.
It is to be noted that home builder Pivotal Homes was put into liquidation on Thursday (May 26). The company has cited rising costs as the driving force behind this decision. As per sources, Derek Cronin of Cronin Miller Litigation, representing the company, stated that increased trade costs, delays, the COVID-19 pandemic and recent weather occurrences have impacted the industry.
It is no secret that construction costs are rising in Australia. As per a report from CoreLogic, national construction costs rose by 7.3% over the 2021 calendar year. This rate of increase is the highest annual growth in construction costs since 2005.
In January this year, many housing projects were left in limbo after Tasmanian Constructions announced its decision to wind up its operations.
Coming to the real estate companies and the Australian share market, investors’ are always keeping an eye of ASX-listed real estate stocks. Today, the S&P/ASX 200 Real Estate Index was up 0.18% at 3,297.5 points at 12:31 PM AEST.
Also watch:
In this backdrop, let us look at four ASX-listed real stocks which have been in the news lately. The four stocks include - Goodman Group (ASX:GMG), DEXUS Property Group (ASX:DXS), and Lendlease Group (ASX:LLC).
Also Read: Why Aussies' power bills are set to go through the roof
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Goodman Group (ASX:GMG)
The shares of ASX-listed industrial property group Goodman Group traded at AU$19.680 per share on ASX at 12:31 PM AEST. Goodman Group shares have gained 3.34% in the last one year, while the stock is down 26.48% year-to-date (YTD).
Goodman Group has a market capitalisation of AU$36.76 billion. Goodman Group had recently forecasted an FY22 operating EPS growth of 23%. Total assets under management increased to AU$68.7 billion at the end of March, despite a negative FX impact, and are expected to be over AU$70 billion by June 2022.
DEXUS Property Group (ASX:DXS)
The shares of DEXUS Property Group was spotted trading 0.047% higher at AU$10.505 per share on ASX at 12:50 PM AEST.
The ASX-listed Australian Real Estate Investment Trust commands a market capitalisation of AU$11.29 billion.
DEXUS Property Group shares have gained 3.19% in the last 12-months, while the stock is down 7.04% year-to-date (YTD).
In its March 2022 quarter, the company transacted AU$2.1 billion worth of properties across the Group.
Recently the Group signed an agreement with Collimate Capital Limited to acquire Collimate’s real estate and domestic infrastructure equity business.
Lendlease Group (ASX:LLC)
Lendlease Group shares were spotted trading 0.373% higher at AU$10.760 per share on ASX at 1:02 PM AEST today.
The share price of Lendlease Group has fallen 12.52% in the last one year, while the stock is down 1.10% year-to-date (YTD).
The company has a market capitalisation of AU$7.38 billion. Headquartered in Sydney, Lendlease is a globally integrated real estate and investment group specialising in shaping cities and creating strong and connected communities.
